New Regime For Trans-Tasman Deal Welcomed

Australian and New Zealand Securities Commissions Welcome New Regime For Trans-Tasman Deals

LawFuel - The Law Jobs and Legal NewsWire

The New Zealand Securities Commission and the Australian Securities and Investments Commission (ASIC) today welcomed the announcement of the Mutual Recognition of Securities Offerings (MRSO) by the Minister of Commerce in New Zealand, Hon Lianne Dalziel and the Minister for Superannuation and Corporate Law in Australia, Senator the Hon Nick Sherry.

The MSRO means issuers of securities can now use one prospectus to offer shares, debentures or managed or collective investment schemes to investors on both sides of the Tasman, subject to meeting certain requirements.

Legislation and regulations were recently introduced in each country by the respective Governments to bring this regime into effect.

‘This new regime will mean cost savings for companies offering securities and will benefit investors with a wider range of investments. It is a significant step towards achieving a single economic market’, Securities Commission Chairman, Jane Diplock said.

‘The MRSO underpins the strength of each country’s regulatory regime and the co-operative relationship between the two nations. We have worked closely together to ensure the new regime maintains the existing protections for investors while reducing the capital-raising and compliance costs for issuers’, ASIC Deputy Chairman, Jeremy Cooper said.

The agencies have also published joint guidance to New Zealand and Australian issuers offering shares, debentures or managed or collective investment schemes in both countries. The guide explains what issuers have to do under the trans-Tasman mutual recognition scheme for offers of securities and the role of the regulators in both countries in relation to an offer.

It also alerts issuers to the specific parts of Australian and New Zealand law that will continue to apply when offers are made under the MRSO, such as the prohibition on door-to-door selling in New Zealand and the securities hawking laws in Australia.
The MRSO will be overseen by ASIC in Australia and the Companies Office and the Securities Commission in New Zealand.

These agencies have developed protocols on cooperation and information-sharing to ensure the smooth running of the new regime.

The guide is available on the Securities Commission’s website at www.seccom.govt.nz and on ASIC’s website at www.asic.gov.au.
New Zealand

Ends

© Scoop Media